New Issue: Mallinckrodt prices $750 million 5 5/8% eight-year notes at par to yield 5.624%

By Paul A. Harris

Portland, Ore., Sept. 9 – Mallinckrodt plc priced a $750 million issue of 5 5/8% eight-year senior notes (B1/BB-) at par to yield 5.624% on Wednesday, according to an informed source.

The yield printed at the tight end of yield talk in the 5¾% area.

Barclays was the lead left bookrunner. Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC were joint bookrunners.

Proceeds will be used to help fund the acquisition of West Chester, Pa.-based immunotherapy company Therakos Inc. from Gores Group.

Mallinckrodt is a U.K.-based specialty biopharmaceutical company with U.S. headquarters in St. Louis.

Issuers:	Mallinckrodt International Finance SA and Mallinckrodt CB LLC
Amount:	$750 million
Maturity:	Oct. 15, 2023
Securities:	Senior notes
Lead left bookrunner:	Barclays
Joint bookrunners:	Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., Wells Fargo Securities LLC
Co-managers:	Mizuho Securities, PNC Capital Markets, SunTrust Robinson Humphrey Inc.
Coupon:	5 5/8%
Price:	Par
Yield:	5.624%
Spread:	360 bps
Call:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2018, then callable at 104.219
Equity clawback:	40% at 105.625 until Oct. 15, 2018
Change-of-control put:	101%
Trade date:	Sept. 9
Settlement date:	Sept. 24
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5¾% area
Marketing:	Quick to market

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